KV Pharama aims to raise $100.9 million with follow-on offering

CBS.MarketWatch.com

WASHINGTON (CBS.MW) -- Generic drug firm KV Pharmaceutical is seeking to raise about $101 million in a 3.335 million share secondary offering, according to documents filed with the Securities and Exchange Commission on Tuesday.

St.Louis-based KV
KVa
intends to use the proceeds to fund potential acquisitions, pay down debt and expand its marketing, sales and research efforts.

It said industry consolidation and cost-containment pressures among larger drug companies "will lead to the divestiture of small or non-strategic product lines" that can be profitable for KV to manufacture and market.

KV targets the women's health and cardiovascular therapeutic markets.

There will be 15.5 million outstanding shares after the offering, which is being underwritten by Credit Suisse First Boston, Deutsche Banc Alex. Brown, Banc of America Securities LLC, and Warburg Dillon Read LLC.

As part of the offering, an additional 665,000 shares will be offered by selling shareholders.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.